What is the relationship between exports and economic growth?

The

connection between exports and economic growth has been carefully studied, mainly due to the results achieved by the growth of exports in some countries. The theoretical basis for achieving growth through the development of export industries is that competition competition requires efficiency, innovation and investment, which may encourage economic growth in the country. The development of export markets can lead to savings of extent, as industrial industries extend and develop their markets overseas in response to foreign demand. The sectors can support world -class skills in the field of design, research and development and marketing that increase their export capacity and support economic development in their own country. Support for international trade leads to free trade policies that support exports from the country and attract direct foreign investment in local industries. By creating conditions in which exporters can develop their business. In some cases they were foundENY Special economic zones or free zones with favorable regulatory and tax incentives combined with modern infrastructure. Companies operating in certain branches such as production or high -speed companies focused on exports were allowed in such zones. Such places have provided an environment in which businesses can attract foreign investments and develop efficient and innovative processes that will compete at international level. These zones can offer reduction or exceptions from customs for raw materials and equipment that are imported to integrate into goods for export.

The development of export industries can enable the country to enable specialization in those activities where it has a comparative advantage and increases the overall production in the Economid result. By increasing the markets for their goods, businesses can increase production levels and use savings from the extent to increase efficiency. TechnologyDeveloped or acquired for international competition can be used on the domestic market to increase production efficiency and lower costs. Another connection between exports and economic growth is therefore the stimulation of specialization and more efficient use of Earth's resources.

Government policies developed to increase international trade may have favorable effects on the economy, which again combines exports and economic growth. Low -tariff policies agreed with other countries may mean that low -cost imports are entering the domestic market, increasing the selection for consumers, and causing domestic industries to reduce costs and increase efficiency. A general reduction in the cost of goods and the growth of national income can increase the well -being of the population and increase in tax collection for the government. This allows government investments in infrastructure to further increase international competitiveness. Government policy may therefore be aimed at increasing the exports and economic growth by creating a favorable business environment.